With flex spending, it’s use it or lose it for some

For many consumers with flexible spending accounts, the end of the year is use-it-or-lose-it time.

Gerry Tuoti Wicked Local Newsbank Editor

For many consumers with flexible spending accounts, the end of the year is use-it-or-lose-it time.

“At the end of the year, there is a significant rush for people to spend down their FSA dollars,” said Nick Severino, director of marketing for the Chicago-based Flexible Benefit Service Corp. (Flex), a leading benefit administrator of consumer-driven accounts. “It’s mostly things like vision and dental care, or orthodontia. They can also use it on basic medical supplies like bandages, digital thermometers and first-aid kits.”

When consumers sign up for flexible spending accounts, or FSAs, they can elect to have money taken out of their paychecks and stashed in an account where it isn’t subject to taxes. The money can then be used to pay medical expenses throughout the year.

But if there’s a remaining balance left on the account at the end of the calendar year, the consumer may lose that money. Some employers allow employees to roll over up to $500 in FSA funds to the next calendar year, while others don’t allow a carryover.

At General Dentistry of Cape Cod in Hyannis, office manager Tricia Maloney said there’s a “slight-to-moderate” uptick in patients scheduling appointments toward the end of the year to use up their FSA balances, but “it’s not a huge influx.”

“We do remind our patients in October that if they have anything to use by the end of the year to use it. We have an email campaign as well to remind them,” Maloney said. “If something requires a large amount of money, like a crown or a bridge, then if the money is available, they should use it.”

While industry analysts say it’s common for patients to use FSA money on eyeglasses and dental work at the end of the year, there’s less of an impact for primary care doctors.

“We never have a real push at the end of the year,” said Lorraine Kanelos, practice administrator for North Shore Physicians Group’s Beverly offices. “I feel like our patients are informed consumers these days and are cognizant of the fact that they have a limited amount they can spend. There’s no mad dash at the end of the year.”

Severino recommends consumers with FSA plans check with their employers if their not sure whether the money can rollover to the next year. Now more than ever, he said, online portals make it easier for patients to log on and track their benefits.

“At any point, our account holders know exactly where they stand and know how much is considered for rollover,” he said. There are so many digital resources out there. If you don’t use it, that’s a lot of money you could be losing.”